Record turnover and profits nearly double for Ewloe based Housebuilder Redrow

Ewloe based housebuilder Redrow Homes has seen full year profits grow a massive 91% in the full year to June 2014.

Group revenue rose 43% to a record £865m for the financial year.

The financial year started strongly for Redrow following the launch of the Government’s ‘Help to Buy’ scheme resulting in the peak selling season for new homes extending through the summer of 2013.

Mortgage approvals steadily increased throughout the first half of the financial year and peaked in January before falling back with a modest recovery in June.

Help to Buy Wales launched in January of this year has provided a much needed lift to a depressed market.

House prices according to Land Registry have risen 6.4% across England and Wales in the twelve months to the end of June with the strongest growth in London and the weakest in the North East.

Redrow’s strong sales performance resulted in private legal completions rising by 20% to 2,963 from 2,474.

Social housing completions increased by 80% to 634 and represented 18% of total completions which rose to 3,597 versus 2,827 last year.

The private average selling price increased by 19% to £269,600 whilst the average social selling price fell by 8% to £98,800 due to a larger proportion of apartments.

The overall average selling price increased by 13% to £239,500 versus £212,500 the previous year and together with the increase in volume helped lift turnover to the record £865m.

Shares in the company rose .96 percent to 283.70 pence in early trade on Tuesday by 9:50am

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Steve Morgan Redrow Chairman said:

“November 2014 marks the 40th anniversary since I founded Redrow and it is now five years since I returned to the business. It is quite fitting and pleasing, therefore, that I am able to report a significant increase in turnover and pre-tax profits, both of which are a record for the Group.

The housing market has been robust throughout the last financial year as the Government’s Help to Buy schemes have enabled many people to purchase their own home for the first time.

I am delighted to report that our London division made its first significant contribution to the Group, generating £124m of revenue in the year.

At June 2014 our current land bank totalled 16,724 plots, an 18% increase on the previous year.

The shortage of skilled people in our industry is another obstacle to preventing increased output in line with demand. I am proud that Redrow continues to be at the forefront in training the next generation of skilled workers at all levels.

During the year we have recruited 48 apprentices, 26 graduates and 8 technical trainees. In total 15% (2013: 14%) of our workforce are on a structured training programme, setting the standard for the house building industry.”

Full statement can be read here Prelims – Chairman’s Statement.